That is true. But that “fixed time” feature doesn’t have to work against you. Quite the opposite. It gives you the flexibility to focus your trade the way you want to – a flexibility you don’t have with a straight long or short equity position. But you need to know how to use it.

If there’s one thing you need to know about options, it’s how to handle this “fixed time” aspect of trading them. Picking the right expiration date can make the difference between a small 15% gain and a huge 300% winner.

So today I want to spend some time to help you get this all down pat, so all your broker rep’s will need to do is provide you the most efficient means to execute your orders. (Heck, if you are using an online platform, you may never have to talk to them at all.)

And then look out for my email next week, when I’ll show you how to focus your trade by picking the right expiration, as well as my personal favorite timeframe for trades.

This may surprise you, but I believe one of the best things that can happen to a brand-new trader is to take a loss.

Don’t get me wrong. It’s great to win, like we have, and be profitable on your first trade, first five trades, or even your first 10 trades. But an immediate winning streak like that may be setting you up for disappointment later.

Why?

Too much success can give new traders an overinflated amount of confidence. You start to think that trading is easy and there isn’t much to it. That whatever you used to choose the winning trades is ALL you will ever have to use; that you found the magic bullet to trading success. You start taking more and more risks… and then disaster.

Look, I can speak to personal history that all I have mentioned is possible… because it happened to me when I started out.

I look back and think if I had suffered a loss or two or more to start, I would have had to learn earlier what it takes to manage a trade when it goes against you.

That’s what I want to show you today, with a follow-up on the GMCR covered call idea.